The tithe rentcharge: a pioneer in income indexation

Abstract

The Tithe Commutation Act 1836 converted church tithes in England and Wales from moduses, compositions and payments in kind to uniform rentcharges. It provided for indexation to reflect fluctuations in the prices of three grains. The object was to give the tithe-owners approximately the same money incomes as they would have expected under the old system, and tithepayers the same burden. This scheme was crippled by the collapse of agricultural prices after 1875. The First World War caused further disruption, and indexation was abandoned. The 1930s depression made tithes an intolerable burden on farmers, and after 1936 they were commuted to redemption annuities (abolished 1977) or the capital was redeemed.